Weekly Market Bullets

for the week ending 5/9/2025

• US Equity Markets rallied last week to levels not seen since the tariff announcements before succumbing to profit-taking, as investors await potential trade deals. The S&P 500 fell 0.5% for the week to bring its losses for the year to down 3.8%. The Nasdaq dropped 0.3% for the week and is now down 7.2% for the year, while the Russell 2000 (small cap stocks) ticked up 0.1% for the week to bring its losses for the year to down 9.3%.

• Global Equity Markets were mixed last week as hopes ebb and flow for new trade agreements ahead of the weekend's meeting between the US and China. Developed Markets decreased 0.2% for the week and are now up 11.2% for the year. Emerging Markets rose 0.5% for the week and are now up 5.9% for the year.

• US Interest Rates moved higher last week on healthy economic data as the Fed chose not to lower rates at its recent meeting. Initial Jobless Claims declined to a very healthy 228K from 241K the prior week, while measures of US Services activity for April came in better than expected. These eased investor concerns about the US economy as hopes rise for trade deals. The yield on the US 10-Year Treasury rose to 4.39% vs. 4.31% the prior week. Investors now expect 2-3 rate cuts from the Fed by the end of the year.

• Cardinal Prevost became the first American Pope in history, defying betting markets. Yes, there was even betting on who would become the next Pope complete with betting odds. Prior to the announcement, the betting markets had given Cardinal Robert Prevost a 1% chance of becoming Pope. Had one placed $100 bet on Prevost, he would have won approximately $10,000. As it turns out, divine intervention isn't easily priced into the markets!

Market Data

for the week ending 5/9/2025